Why Advertising on Illegal Music Sites is Beneficial
By - Ali Martino
Spring 2010
Table of Contents
Executive Summary 1
Introduction 2
Illegal Downloading is here to Stay 2
Dominant Force in Illegal Music Sites 3
ITunes vs. Lime Wire 5
Targeting Gen-Y 6
Recommendation 7
Attachment 1: Lime Wire’s Simple Set up 8
Attachment 2: Transferring Lime Wire Songs to ITunes 9
Attachment 3: Easy to Read Ads 10
References 11
Executive Summary
Peer to peer file sharing, introduced in 1999, forever changed the way individuals downloaded music files. The increased popularity of illegally downloading lead to numerous lawsuits.But with new sites emerging and a soaring amount of people downloading illegally, the thought of being sued seems to be a thing of the past. Founded in 2000 by CEO Mark Gorton, Lime Wire is a leader of innovative peer-to-peer software development and solutions in the file sharking industry. It is extremely easy to use, can integrate iTunes, and even works through firewalls. Competition between peer to peer downloading sites such as Lime Wire and pay per song sites such as iTunes will continue to occur. Yet the ability to target sites such as Lime Wire, where an enormous amount of Gen-Y clients go, will financially benefit advertising companies. To be able to develop ways to directly connect to a large Gen-Y population can show positive results for both the clients and marketers.
Make all of this the intro topic. Introduction: Illegal Downloading is here to stay
Music companies need to stop resisting and accept that illegal downloading is a fact of 21st-century. Pay per song music services continue to lower song prices, but even when the prices are approaching near zero people are more likely to act habitually than to break their habit. 95% of music downloads in 2008 were illegal.
A New national survey conducted for the Business Software Alliance found that two thirds of 1,062 college and university students said they have no ethical reservations about illegally downloading digital copyrighted files from the internet for free. The survey released also stated that 52 percent of the college-age respondents believe it is permissible to pursue such downloading of software, music, and movies at school or at the workplace.
Do you have a reference for the BSA survey? Add reference here to Proximity focus group results.
Since this whole section is about iTunes, get the name in the topic heading.
Dominant Force in Legal Music Downloading Sites
ITunes is a digital media player application used for playing and organizing digital music and video files. ITunes store can be used to purchase and download music, music videos, television shows, applications, ipod games, audiobooks, movies, and etc. ITunes has contributed $790 million of the $16 billion in revenue Apple made at the end of 2009.
Since iTunes works together with iPods, the world’s best selling portable media players; it’s easy to see why iTunes is the world’s largest pay per song music retailer. For this reason, they are not finding much competition in pay per song music sites. ITunes focuses on developing new products that are easy to use and coincide with iTunes. This allows them to charge as much as $1.29 per song and still dominate over other music programs. (Apple insider)
Figure 2. Digital Music Sales Market Share Source: http://www.edibleapple.com/itunes-dominates-online-us-music-sales-chart/
Apple Inc. revealed significant pricing and copyright changes to its iTunes store. The changes include a new three-tiered pricing plan for songs, and also plans to drop copy protection from all of the songs in its digital store. The changes appear to be in response to shifts in the digital-music market. By dropping the copy protection on more than 8 million songs, customers using competing products such as Zune and Sandisk will be able to download and listen to songs from iTunes on their devices.
ITunes vs. Lime Wire
More than one billion songs have been purchased from its iTunes music services. That sounds like a great number until you consider that an estimated ten million users of Internet based peer to peer networks are logged on at any one time to swap music.
Paying for Apple vs. Downloading for Free In a world with variance in individuals’ needs and valuations, these dimensions are evaluated, allowing both models to coexist. Legal considerations play an important role as a number of p2p users have been sued by record companies, both other aspects, such as the availability of content are also relevant.
Other differences such as Digital rights management (DRM) technologies are used to limit the playback of music purchased on iTunes, which p2p services has no such restrictions. In contrast, indexing data contained in media files is better on iTunes. This allows collections to constantly be organized allowing for a better navigation experience.
Encoding quality also has a big part in choosing iTunes vs. Lime Wire. Quality of music varies widely in p2p networks, whereas the exceptional quality on every song purchased on iTunes. Yet, services on p2p networks have continued to improve over the years and in many cases surpass that of iTunes.
ITunes provides a unified interface when obtaining the content of a song. It integrates the location, purchase, and consumption, of content. Users of p2p networks must endure various levels of congestion that puts a damper on the quality of the process.
I would rename this section - it is not about targeting Gen-Y per se but rather about Gen-Y using P2P. In fact, what I would suggest is making the section above about P2P and moving the survey data up there. Put the generic Gen-Y stuff in the intro. Then make the subsection here on Limewire as an open social network a separate topic. In other words, you want to move from the general issue of illegal downloading, through an explanation of P2P, to s specific focus on Limewire
Gen-Y Uses P2P
Why should Advertising companies focus on reaching out to Gen-Y?
Gen-Y currently makes up for 28% of the population. They have received the best in education and inquire the most personal wealth in history. They are the largest group to influence the American scene since the baby boomers. Gen-Y consumers have grown up in an even more technologically advanced media than their parents and respond to advertising differently. About three-quarters of Gen-Y use the internet regularly. The group’s tendency to use this medium as its main communication method should encourage marketers to create ways and means to target its members.
Why Advertise to Gen-Y through Lime Wire?
· 40% of Lime Wire users are between the ages of 13-21 · 49% of Lime Wire users are between the ages of 21-35 · 44% of Lime Wire users are students · 16% of Lime Wire users are employed in the I.T. field · 98% of Lime Wire users have high-speed Internet connections · P2P users are highly tech savvy · Over 200 million P2P users worldwide · P2P users download over 1.5 billion files every month
Figure 3. Demographics of P2P users Source: http://www.zapshares.com/advertise/
Developing an Open Social Network
Lime Wire’s system will keep tract of the type of music customers are downloading. Through their database they are able to use that relationship between the user and they type of music that is being downloaded to be stored in Lime Wire’s records. In turn, Lime Wire will allow advertisement sites to tap into people’s connections and preferences. This will make it so all web sites can work together to build a more comprehensive map of connections.
This is important because people show how information moves through their connections. People are increasingly discovering information not just through links to web pages but also from the music that they download. All websites can work together to build a more comprehensive map of connections and create a better, more social experience for everyone.
Lime Wire is able to put people at the center of the web. It lets you shape your experiences online and make them more social. For example, if you download a particular band, that information can become part of the graph which will then be connected to certain advertisements that appeal to that type of customer.
Recommendation The first sentence here doesn't make sense. I think what you are trying to say is that Proximity clients need to understand the new competitive landscape in online music.
Since Proximity is a Gen-Y on demand strategy group, it is important to understand the underlying connection by using a new landscape. Through inside networks, Proximity clients will be able to develop customized campaigns that can reach Gen-Y from the peer to peer network Lime Wire.
· Target specific customers based on interests · Be involved in a map of inside connections · Reach Gen-Y through sites that are most visited
"report recommends"
This report is recommending that Proximity clients take an inside look at Gen-Y’s interests and to act on that information to be able to directly connect with them. Being able to directly connect with Gen-Y through Lime Wire will give Proximity clients an inside financial advantage to the future.
Attachment 1: Lime Wire’s Simple Set Up
Lime Wire’s simple homepage makes downloading music simple and easy to understand
Attachment 2: Transferring Lime Wire Songs to iTunes
Being able to transfer songs from Lime Wire to iTunes allows songs to be put on ipods.
Attachment 3: Easy to Read Ads
Ads on Lime Wire that target Gen-Y
proximity
a next generation connection
Proximity Research Report
Advertising on Legal vs. Illegal Music Sites
Why Advertising on Illegal Music Sites is Beneficial
By - Ali Martino
Spring 2010
Table of Contents
Executive Summary 1
Introduction 2
Illegal Downloading is here to Stay 2
Dominant Force in Illegal Music Sites 3
ITunes vs. Lime Wire 5
Targeting Gen-Y 6
Recommendation 7
Attachment 1: Lime Wire’s Simple Set up 8
Attachment 2: Transferring Lime Wire Songs to ITunes 9
Attachment 3: Easy to Read Ads 10
References 11
Executive Summary
Peer to peer file sharing, introduced in 1999, forever changed the way individuals downloaded music files. The increased popularity of illegally downloading lead to numerous lawsuits.But with new sites emerging and a soaring amount of people downloading illegally, the thought of being sued seems to be a thing of the past. Founded in 2000 by CEO Mark Gorton, Lime Wire is a leader of innovative peer-to-peer software development and solutions in the file sharking industry. It is extremely easy to use, can integrate iTunes, and even works through firewalls. Competition between peer to peer downloading sites such as Lime Wire and pay per song sites such as iTunes will continue to occur. Yet the ability to target sites such as Lime Wire, where an enormous amount of Gen-Y clients go, will financially benefit advertising companies. To be able to develop ways to directly connect to a large Gen-Y population can show positive results for both the clients and marketers.
Make all of this the intro topic.
Introduction: Illegal Downloading is here to stay
Illegal Downloading has shown a gradual increase since January 08
Figure 1. Growth in Download Requests
Source: http://blogs.thestage.co.uk/tvtoday/2008/05/20/iplayer_graph_1.jpg
Music companies need to stop resisting and accept that illegal downloading is a fact of 21st-century. Pay per song music services continue to lower song prices, but even when the prices are approaching near zero people are more likely to act habitually than to break their habit. 95% of music downloads in 2008 were illegal.
A New national survey conducted for the Business Software Alliance found that two thirds of 1,062 college and university students said they have no ethical reservations about illegally downloading digital copyrighted files from the internet for free. The survey released also stated that 52 percent of the college-age respondents believe it is permissible to pursue such downloading of software, music, and movies at school or at the workplace.
Do you have a reference for the BSA survey? Add reference here to Proximity focus group results.
Since this whole section is about iTunes, get the name in the topic heading.
Dominant Force in Legal Music Downloading Sites
ITunes is a digital media player application used for playing and organizing digital music and video files. ITunes store can be used to purchase and download music, music videos, television shows, applications, ipod games, audiobooks, movies, and etc. ITunes has contributed $790 million of the $16 billion in revenue Apple made at the end of 2009.
Since iTunes works together with iPods, the world’s best selling portable media players; it’s easy to see why iTunes is the world’s largest pay per song music retailer. For this reason, they are not finding much competition in pay per song music sites. ITunes focuses on developing new products that are easy to use and coincide with iTunes. This allows them to charge as much as $1.29 per song and still dominate over other music programs. (Apple insider)
Figure 2. Digital Music Sales Market Share
Source: http://www.edibleapple.com/itunes-dominates-online-us-music-sales-chart/
Apple Inc. revealed significant pricing and copyright changes to its iTunes store. The changes include a new three-tiered pricing plan for songs, and also plans to drop copy protection from all of the songs in its digital store. The changes appear to be in response to shifts in the digital-music market. By dropping the copy protection on more than 8 million songs, customers using competing products such as Zune and Sandisk will be able to download and listen to songs from iTunes on their devices.
ITunes vs. Lime Wire
More than one billion songs have been purchased from its iTunes music services. That sounds like a great number until you consider that an estimated ten million users of Internet based peer to peer networks are logged on at any one time to swap music.
Paying for Apple vs. Downloading for Free
In a world with variance in individuals’ needs and valuations, these dimensions are evaluated, allowing both models to coexist. Legal considerations play an important role as a number of p2p users have been sued by record companies, both other aspects, such as the availability of content are also relevant.
Other differences such as Digital rights management (DRM) technologies are used to limit the playback of music purchased on iTunes, which p2p services has no such restrictions. In contrast, indexing data contained in media files is better on iTunes. This allows collections to constantly be organized allowing for a better navigation experience.
Encoding quality also has a big part in choosing iTunes vs. Lime Wire. Quality of music varies widely in p2p networks, whereas the exceptional quality on every song purchased on iTunes. Yet, services on p2p networks have continued to improve over the years and in many cases surpass that of iTunes.
ITunes provides a unified interface when obtaining the content of a song. It integrates the location, purchase, and consumption, of content. Users of p2p networks must endure various levels of congestion that puts a damper on the quality of the process.
Lime Wire
Table 1. Lime Wire vs. iTunes
Source: http://hbswk.hbs.edu/item/5594.html
I would rename this section - it is not about targeting Gen-Y per se but rather about Gen-Y using P2P. In fact, what I would suggest is making the section above about P2P and moving the survey data up there. Put the generic Gen-Y stuff in the intro. Then make the subsection here on Limewire as an open social network a separate topic. In other words, you want to move from the general issue of illegal downloading, through an explanation of P2P, to s specific focus on Limewire
Gen-Y Uses P2P
Why should Advertising companies focus on reaching out to Gen-Y?
Gen-Y currently makes up for 28% of the population. They have received the best in education and inquire the most personal wealth in history. They are the largest group to influence the American scene since the baby boomers. Gen-Y consumers have grown up in an even more technologically advanced media than their parents and respond to advertising differently. About three-quarters of Gen-Y use the internet regularly. The group’s tendency to use this medium as its main communication method should encourage marketers to create ways and means to target its members.
Why Advertise to Gen-Y through Lime Wire?
· 40% of Lime Wire users are between the ages of 13-21
· 49% of Lime Wire users are between the ages of 21-35
· 44% of Lime Wire users are students
· 16% of Lime Wire users are employed in the I.T. field
· 98% of Lime Wire users have high-speed Internet connections
· P2P users are highly tech savvy
· Over 200 million P2P users worldwide
· P2P users download over 1.5 billion files every month
Figure 3. Demographics of P2P users
Source: http://www.zapshares.com/advertise/
Developing an Open Social Network
Lime Wire’s system will keep tract of the type of music customers are downloading. Through their database they are able to use that relationship between the user and they type of music that is being downloaded to be stored in Lime Wire’s records. In turn, Lime Wire will allow advertisement sites to tap into people’s connections and preferences. This will make it so all web sites can work together to build a more comprehensive map of connections.
This is important because people show how information moves through their connections. People are increasingly discovering information not just through links to web pages but also from the music that they download. All websites can work together to build a more comprehensive map of connections and create a better, more social experience for everyone.
Lime Wire is able to put people at the center of the web. It lets you shape your experiences online and make them more social. For example, if you download a particular band, that information can become part of the graph which will then be connected to certain advertisements that appeal to that type of customer.
Recommendation
The first sentence here doesn't make sense. I think what you are trying to say is that Proximity clients need to understand the new competitive landscape in online music.
Since Proximity is a Gen-Y on demand strategy group, it is important to understand the underlying connection by using a new landscape. Through inside networks, Proximity clients will be able to develop customized campaigns that can reach Gen-Y from the peer to peer network Lime Wire.
· Target specific customers based on interests
· Be involved in a map of inside connections
· Reach Gen-Y through sites that are most visited
"report recommends"
This report is recommending that Proximity clients take an inside look at Gen-Y’s interests and to act on that information to be able to directly connect with them. Being able to directly connect with Gen-Y through Lime Wire will give Proximity clients an inside financial advantage to the future.
Attachment 1: Lime Wire’s Simple Set Up
Lime Wire’s simple homepage makes downloading music simple and easy to understand
Attachment 2: Transferring Lime Wire Songs to iTunes
Being able to transfer songs from Lime Wire to iTunes allows songs to be put on ipods.
Attachment 3: Easy to Read Ads
Ads on Lime Wire that target Gen-Y
References
Anonymous. (2007.) Advertising to Generation-Y, allbusiness.com. Retrieved May 3, 2010 from http://www.allbusiness.com/marketing-advertising/marketing-advertising-overview/8900731-1.html
BBC iPlayer. (2008.) Growth in Requests to View. TheStage.co.uk. Retrieved May 1, 2010 from http://blogs.thestage.co.uk/tvtoday/2008/05/20/iplayer_graph_1.jpg
Crum, Chris. (2009.) LimeWire CEO talks Money Music Industry and Company, google.com. Retrieved May 7, 2010 from http://images.ientrymail.com/webpronews/article_pics/limewire-store.jpg
HomeBusiness (2009.) Marketing to Generation Ys, Homebusinesslink.com. Retrieved May 5, 2010 from http://www.homebusinesslink.com/Marketing-To-Generation-Ys.html
LimeWire LLC. (2010.) Lime Wire, The Company. LimeWire.com. Retrieved May 1, 2010 from http://www.limewire.com/about/company
NPD Group. (2009.) ITunes Dominates Online Music Sales, Edibleapple.com. Retrieved May 2, 2010 from http://www.edibleapple.com/itunes-dominates-online-us-music-sales-chart/
Raymound. (2010.) LimeWire 5 Pro, google.com. Retrieved May 7, 2010 from http://i40.tinypic.com/2hyxa3n.jpg
Silverthrone, Sean. (2007.) Delivering the Digital Goods: ITunes vs. Peer to Peer, hbs.edu. Retrieved May 2, 2010 from http://hbswk.hbs.edu/item/5594.html table 1
Wiki. (2010.) iTunes Integration, google.com. Retrieved May 7, 2010 from http://wiki.limewire.org/images/e/ec/ITunesOptions.png attachment 2
Wong, Brad. (2005.) Illegal Downloading Don’t Pose Ethical Problems for College Students, Seattlepi.com. Retrieved May2, 2010 from http://www.seattlepi.com/business/230702_downloads30.html
ZapShares. (2010.) ZapShares Media Network, Zapshares.com. Retrieved May 3, 2010 from http://www.zapshares.com/advertise/
Zuckerburg, Mark. (2010.) Building the Social Web Together, Facebook.com. Retrieved May 6, 2010 from http://blog.facebook.com/blog.php?post=383404517130